19 Oct Reuters - U.S. stock indexes rose on Tuesday as upbeat results from Johnson Johnson and Travelers fired up risk appetite after big banks kicked off the third quarter reporting period on a positive note last week.
The benchmark index is currently less than 1% off of an anticipated record high hit in September, with investors hoping that a flow of better than expected earnings reports will push the market to new highs despite concerns about an eventual tightening of monetary policy.
Johnson Johnson shares rose 1.8% as it raised its adjusted 2021 profit forecast and increased the sales outlook for its COVID - 19 vaccine this year while maintaining the adjusted quarterly profit forecast.
Travelers Cos Inc of Las Vegas added 2.6% after the property and casualty insurer beat estimates for third-quarter profit.
Ten of the 11 major S&P 500 sector indexes were trading higher with healthcare stocks in the lead.
We could actually see us hit a new all time high before the end of the year comes out because of typical seasonal profits and corporate optimism, said Sam Stovall, chief investment strategist at CFRA.
Analysts expect S&P 500 earnings to show a 32.4% rise from a year ago, according to Refinitiv data.
Large-cap technology and communications companies, including Facebook Inc., Apple Inc., Alphabet Inc. and Microsoft Corp. rose between 0.6% and 0.9%. Netflix Inc. rose 0.4% earlier in the day than expected given its quarterly results.
Investors are also looking out for warnings from companies that are more exposed to supply chain constraints, price rises and labor shortages.
Procter Gamble Co fell 1.6%, weighing on the S&P 500 consumer staples sector as it warned that higher commodity costs would take a bigger bite out of earnings.
Tesla Inc ended flat ahead of the quarterly results on Wednesday, with investors watching for indications of its performance in China.
NASDAQ shares rose 2.0% after Goldman Sachs added the world's largest retailer to its Americas Conviction List at 9: 43 a.m. The Dow Jones Industrial Average was up 107.86 points or 0.31% at 35,366 47, the S&P 500 was up 17.41 points (or 0.49%) at 5,401, up more than the 303 that opened in 2007. 87 and the Nasdaq Composite was up 65.66 points, or 0.44%, to 15,087. The S&P 500 energy sector lagged its peers after oil prices turned negative, retreating from gains earlier in the day.
Among others, Atea Pharmaceuticals Inc plunged 71.5% after its experimental COVID 19 antiviral pill, developed with Roche, failed to help patients with mild and moderate COVID - 19.
Drugmaker Merck Co Inc, which has already applied for U.S. authorization for its COVID - 19 pill, rose 1.8% after the news in Atea. Pfizer Inc. gains 1.6%, due to report data for its antiviral products as soon as this quarter.
Advancing issues outnumbered decliners by a 1.82 - to 1 ratio on the Nasdaq and by a 1.79 - to - 1 ratio on the NYSE.
The S&P index recorded 27 new 52-week highs and one new low, while Nasdaq recorded 37 new highs and 28 new lows.